Unions oppose NERSA’s decision to increase electricity tariffs
Consumers in for a crunch as electricity tariffs increase by 9.4%
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The National Energy Regulator of South Africa (NERSA) has approved Eskom’s application to increase electricity tariffs by 9.4%.
The power utility wanted to raise funds to cover costs incurred during the 2013/14 financial year.
The initial application by Eskom totalled the amount of R22.8-billion.
Eskom’s Brian Molefe said, “Eskom has noted NERSA’s decision, which yet again doesn’t address the question of Eskom’s continued financial sustainability. In addition, it will have operational consequences.”
The granted increase applies to the 2016/17 financial year and it means consumers are in for a crunch due to the current economic situation faced by the country.
Eskom intends on using the increase to cover costs of Open Cycle Gas Turbines (OCGTs) used during the load shedding period of 2013/14.
The Congress of South African Trade Unions (COSATU) has opposed Nersa’s decision to grant Eskom the 9.4% increase. The union feels that consumers are made to suffer for Eskom’s inefficiencies.
Cosatu national spokesperson Sizwe Pamla said, “What is clear is that consumers can’t afford any further increases in the cost of living and will be devastated by this latest blow from NERSA.
“This will actually plunge even more people into poverty. Going forward these tariff increases will have dire consequences for the economy and job creation.”
Last year, Soweto residents were up in arms with Eskom opposing the introduction of prepaid electricity.
Protests broke out in Orlando and other areas with residents demanding a flat rate.